The energy working group under the government commission on administrative reform refused to approve a draft resolution by the Russian Ministry of Energy on a new "take or pay" principle for electricity buyers, including cryptocurrency miners. The document was sent back for revision, Kommersant reports.

Even if the comments are approved, nothing will change for miners, the Ministry of Energy makes clear: crypto mining companies will not be exempted from the new mechanism—meaning, starting January 1, they will be required to pay not based on actual consumption, but for almost all kilowatts of their maximum energy capacity.

The document is being amended primarily to benefit utility companies. Specifically, heat, water, and wastewater utilities are proposed to be exempt from the new mechanism, the publication reports, citing participants in the working group meeting.

Utility companies are complaining about costs and pointing out that, according to the draft ministerial resolution, they are required to have backup power sources, which will have to be paid for additionally. Costs could at least double, and these costs will ultimately be factored into tariffs and passed on to households, utility companies complain. Furthermore, the proposed capacity thresholds have no technological or economic connection to the actual costs of the power grid, leading to additional revenue for grid operators, according to the working group members.

The Ministry of Energy explained to Kommersant journalists that large data centers and mining facilities have been singled out as a separate group—for them, the mechanism will apply in any case and regardless of the date of connection to the grid—that is, for both new and existing electricity buyers. Moreover, for miners, the minimum payment volume is proposed to be set at 90% of the company's declared capacity, rather than 70%, as for others.

The "take or pay" principle assumes that consumers will pay for electricity not based on actual consumption, but based on the maximum possible consumption. The scheme will affect industrial enterprises with a capacity of over 670 kW. The Ministry of Energy expects the new mechanism to be operational by 2027.

Earlier, the mining company Algorithm conducted a study that showed that in the next two to three years, the model of continuous operation of mining farms from the grid will become economically unviable in Russia. Due to rising energy costs, the study's authors concluded, Russia is already "losing the competition to large American companies."

Algorithm sent a letter to the Russian Ministry of Energy asking it to abandon the "take and pay" principle. The letter argued that, under the current unfavorable economic conditions, miners could become energy-balancing organizations—that is, capable of loading energy capacity during periods when it is idle and, conversely, limiting consumption when the grid is under strain.

Russian miners are being refused exclusion from the "take and pay" scheme.